Against all odds, Dangote Group pursues $30bn revenue target for 2025

Business a.m

The Dangote Group has made the leap from being solely Nigerian-based to a pan-African enterprise with operations in 14 African countries. Despite navigating an array of obstacles, including complex visa processes, unpredictable government policies, inadequate technical talent, infrastructure deficits, foreign exchange crisis, inflation, high cost of capital, and numerous other conflicts, the Group has achieved impressive growth, employing over 50,000 people and anticipating revenues to surpass $30 billion by 2025.

Aliko Dangote, Dangote Group’s president and CEO, made the disclosure in a keynote address at the just concluded African Renaissance Retreat held in Kigali, Rwanda, where he underscored the need for African business leaders to take the reins in driving transformation on the continent.

The leader of the pan-African conglomerate, also emphasised the critical role of African business leaders in shaping the future of the continent and highlighted the need for collaboration and innovation to overcome the challenges faced by African businesses.

Dangote also highlighted the potential of Africa’s youthful population and its vast mineral wealth, noting that despite the numerous challenges the continent faces, its opportunities for significant and inclusive growth remain abundant. With reserves of 30 percent of the world’s minerals, including the largest reserves of gold, cobalt, uranium, platinum, and diamonds, Dangote underscored the abundance of resources that could propel the continent forward, calling upon African business leaders to harness these opportunities for the continent’s socio-economic development.

“Additionally, we have 65% of the world’s arable land and 10% of the planet’s internal renewable freshwater sources. Together these present a myriad of opportunities for robust, inclusive growth that harness our abundant human potential and natural resources to increase prosperity, not just in Africa but across the globe,” hee said.

Dangote spoke on the critical juncture at which Africa currently stands, with its youthful population, growing cities, and rapidly expanding technological advancements, including Artificial Intelligence. He noted that the continent is at a crossroads, poised to leverage its youthful population and embrace innovation as a catalyst for economic growth. The continent’s rapidly expanding cities and technological advancements, he suggested, present a unique opportunity for Africa to become a leader in digital transformation and entrepreneurship.

The Dangote Group president recounted the challenges his company had to overcome in its journey of expansion across Africa.

According to the business magnate, despite facing multiple obstacles, including complicated visa procedures, unpredictable government policies, insufficient technical talent, inadequate infrastructure, foreign exchange crisis, inflation, high cost of capital, and other conflicts, the company has managed to expand into 14 African countries, establishing a diverse range of businesses spanning cement, fertilizers, sugar, oil refineries, petrochemicals, agriculture, and more.

“The good news is that despite these challenges, we have succeeded in building a pan-African Group that employs over 50,000 people and generates revenues that should exceed $30 billion by the end of 2025,” he stated.

Dangote, the initiator of the African Renaissance Retreat, revealed that his idea to gather African business leaders to discuss the challenges facing the continent and to explore potential solutions had been brewing for some time. He noted that despite the significant obstacles present in Africa, including conflicts, energy and food insecurity, supply chain disruptions, debt crises, and limited access to long-term funding for development, the continent remained a viable investment destination with tremendous potential.

He stated: “This small private and high-level gathering to discuss these issues and align on how we will own and shape our narrative for development is long overdue. With the foremost entrepreneurs on the continent, the leaders of the largest pan-African companies, those at the helm of the most important development institutions in Africa, our brothers and sisters leading global institutions, our leading investors, our pre-eminent civil society activists and a few of our most respected political leaders, this first step will be an opportunity to have a frank and honest dialogue amongst ourselves to consolidate what we see as our common ground.

“We are coming together not just as leaders in our respective institutions but as visionaries and catalysts for transforming our societies. It is our collective responsibility to play our role in transforming our continent. Nobody will do it for us but us – especially us in this room.”

Addressing the African Renaissance Retreat attendees,Dangote expressed his hope that the gathering would produce initiatives with the potential to significantly influence Africa’s future and improve the lives of its people.

The industrialist also appreciated the presence and contributions of dignitaries such as President Paul Kagame of Rwanda, former Presidents Olusegun Obasanjo and Ellen Johnson Sirleaf, and former Prime Minister Hailemariam Dessalegn. He urged African leaders to go beyond mere dialogue and take decisive actions that would have tangible impacts on Africa’s development and progress.

As a result of the discussions at the African Renaissance Retreat, participants arrived at several key resolutions. The resolutions included encouraging regular high-level dialogue between African private sector and political leaders, supporting the ratification of protocols for free movement of people, launching the African Renaissance Companies Gender Compact, and convening prominent global business leaders of African descent.

The leaders also endorsed initiatives aimed at significantly reducing logistics costs on the continent and expanding internet access to a larger segment of Africa’s population.

The African Renaissance Retreat, held between September 6 and 8, brought together a distinguished group of participants that included prominent figures such as Amina J. Mohammed, the deputy secretary-general of the United Nations; Benedict Oramah, president and chairman of the board of directors of the African Export-Import Bank; former Liberian president Ellen Johnson Sirleaf; Adebayo Ogunlesi, chairperson of Global Infrastructure Partners; former Ethiopian Prime Minister Hailemariam Dessalegn, Samaila Zubairu of the African Finance Corporation, Makhtar Diop of IFC, and Jeremy Awori, CEO of Ecobank Transnational Incorporated.

Others were Bernie Mensah of Bank of America; James Mwangi of Equity Group Holdings; Alain Ebobisse of Africa50; Aigboje Aig-Imoukhuede of Access Holdings; Genevieve Sangudi of Alterra Capital Partners; Jim Ovia of Zenith Bank; Tony Elumelu of Heirs Holdings; Naguib Sawiris of Orascom Telecom Holding; Dr. Vera Songwe; Jonathan Oppenheimer of Oppenheimer partners; James Manyika of Google;  Clare Akamanzi of NBA Africa; Fred Swaniker of Africa Leadership Group; Hakeem Belo-Osagie of Harvard Business School; Myma Belo-Osagie of Harvard Africa Studies Centre; Patrice Motsepe of African Rainbow Minerals.

Also in attendance were Mohammed Dewji of METL; Moussa Faki Mahamat of Africa Union; Graca Machel of the Graca Machel Trust; Wamkele Mene of African Continental Free Trade Area Secretariat;  Tope Lawani of Helios Partners; Masai Ujiri of the Toronto Raptors; Mimi Alemayehou of Three Cairns Group; Donald Kaberuka of Southbridge Group; Precious Moloi-Motsepe of Africa Fashion International; Richelieu Dennis of Sundial Group of Companies; Louise Mushikiwabo, Secretary General of Organisation Internationale de la Francophonie; Hassanein Hiridjee of Axian Group; Kate Fotso of Telcar Cocoa; Nkosana Moyo of Mandela Institute for Development Studies; and Nku Nyembezi of Standard Bank Group.